Ford, GM Gain 3% as U.S. Auto Sales Surge, Tesla Falls

By Ben Levisohn

Shares of General Motors (GM) have gained 3% to $35.16 today, while Ford (F) has risen 2.9% to $16.82, after U.S. auto sales surged last month. The Wall Street Journalhas the details:

Chrysler said it had its best August in six years, while Ford said its 20% gain with retail buyers was its best monthly performance since 2006. GM touted its best month since September 2008, when the global financial crisis descended on the auto market….

GM’s auto-sales rise of 15% in August outpaced rivals Ford and Chrysler, which both posted not-too-shabby 12% growth. Overall, GM sold 275,847 vehicles in August, with retail sales climbing 22% to 220,958…

For Ford, both car and truck sales grew 18% in August. Utility-vehicle sales were roughly flat with a year earlier. The Ford brand sold 213,078 vehicles in the U.S. in August, up 13% from a year earlier and above July’s total of 193,715. The Lincoln brand’s sales inched up 0.6% from a year earlier to 8,192.

The strength in the auto-sales data has done nothing for Tesla (TSLA), however. Its shares have dropped 1.7% today to $166.00, its largest drop since falling 4.2% on August 14. Interestingly, its the seventh trading day in a row that its moved in the opposite direction of Ford, the longest such streak in at least a year.

Now, the last time I compared Tesla to the old guard, I got slammed for being anti-Tesla, and for offering meaningless information. However, I find it a useful tool in terms of understanding the market’s psychology. It in no way means I hate Tesla, hate GM, hate Ford, or hate my readers.

And right now, it shows that during this very short time frame investors are playing a binary game with the stocks–what’s positive for sentiment around one, is negative for the other.

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.